By: ICN Bureau
Last updated : August 09, 2025 9:20 am
The overall Chemicals business revenue was up by 16% YoY at Rs. 2,391 crore
Aditya Birla Group flagship Grasim Industries Ltd officially announced here on Friday that it has posted a 32% growth in net profit on a consolidated basis at Rs 1,419 crore for Q1 FY26.
The company’s net profit rose to Rs 1,419 crore in Q1FY26 from Rs 1,075 crore a year earlier. Consolidated revenue grew 16% year-on-year (YoY) to Rs 40,118 crore, while EBITDA increased 36% to Rs 6,430 crore, the company said in a filing.
The 32% growth in net profit has been attributed to strong performance by UltraTech Cement, a Grasim company, aided by good performance in its chemicals business, according to the company statement.
Caustic soda sales volume grew by 8% YoY. Caustic Soda international average spot prices (CFRSEA) for Q1FY26 stood flattish YoY at $468/ton. Our ECU realisations were up 10% YoY to Rs. 35,911/ton, though flattish QoQ. Continued negative Chlorine realisations on account of oversupply impacted ECU realisations. Utilisation rates are steadily ramping up from new plant in Specialty Chemicals. However, lower realisation due to low priced imports coupled with higher input costs impacted profitability in Specialty Chemicals.
The overall Chemicals business revenue was up by 16% YoY at Rs. 2,391 crore. EBITDA increased by 36% YoY at Rs. 422 crore driven by higher volume and improved realisation in Caustic Soda and better profitability of Chlorine Derivatives.
Decorative Paints business, Birla Opus, reported double digit revenue growth on a QoQ basis. As per internal estimates, Organised Decorative Paints industry has grown by over 5% YoY (however excluding Birla Opus revenue the industry has slightly de-grown). Birla Opus is India’s #3 Decorative Paints Brand, as per these internal estimates. The trial production of Water Based Paints & Emulsions commenced at the sixth Birla Opus plant in Kharagpur and commercial launch is on track by end of Q2FY26. Post this, the Company capacity of the Organised Paints industry would reach to ~24% with an installed capacity of 1,332 MLPA. The Paint distribution network has now expanded to over 8,000 towns. The business has introduced new product packaging and expanded its portfolio to 179 products with 1,460+ SKUs across entire six decorative paints product categories. The business is expanding scope of branded painting services “PaintCraft” through dealer operated franchisees across 100+ towns in Q2FY26.
According to the company statement, “Grasim stands to gain from India’s broad-based economic momentum, and has a diversified portfolio, with strategic capital deployment and scale across core sectors. The push for infrastructure expansion, resurgence in domestic manufacturing, formalisation of the financial system, as well as rising disposable incomes are creating sustained demand.”
Capital expenditure for Q1FY26 stood at Rs. 480 crore. The board has approved capital expenditure of Rs. 2,263 crore for FY26. The Phase-1 of the Cellulosic Fibres business, Lyocell project of 55K TPA (total capacity 110K TPA) is progressing as per plan with commissioning targeted by mid-2027.
Outlook
Grasim Industries stands to gain considerably from India’s broad-based economic momentum. Its diversified portfolio, underpinned by strategic capital deployment and scale-building across core sectors, places it in a unique position as the country advances through its next phase of development. The Government’s ambitious agenda for a Viksit Bharat, rooted in infrastructure expansion, a resurgence in domestic manufacturing, formalisation of the financial system, and rising disposable incomes, creates fertile ground for sustained demand. With its strong foundations and future- focused investments, Grasim is well placed to participate in the next chapter of India’s growth.